Betting on Baldwin County

As it marks 30 years, BCEDA reflects on its economic impact both now and going forward.

by Kaija Wilkinson
images courtesy of BCEDA

Former board members, chairs, staff, investors and partners of the Baldwin County Economic Development Alliance (BCEDA) came together at Point Clear’s Grand Hotel Golf Resort & Spa in late September to celebrate 30 years. They honored past and recent achievements and spotlighted a promising future. On hand were South Baldwin Chamber of Commerce President and CEO Donna Watts, who played a pivotal role in the alliance’s formation in 1994; BCEDA President and CEO Lee Lawson; BCEDA Executive Vice President (EVP) Lee Johnson; and Alabama Lieutenant Gov. Will Ainsworth, who spoke about the economic development momentum the state and Baldwin County have experienced in recent years. From Watts’ inspiring a shared vision among county commissioners, chambers of commerce and business leaders 30 years ago until now, the alliance is nurturing growth, creating jobs and generating capital investment. Since its establishment, BCEDA has contributed to the creation of nearly 15,000 jobs in the county’s current job market and generated $7.7 billion in capital investment. Its annual Baldwin County economic output is $3.9 billion.

The alliance’s efforts paved the way for the October 2022 groundbreaking on the $2.5 billion Novelis aluminum recycling facility on a 3,000-acre site in Bay Minette, which was attended by Gov. Kay Ivey. This was preceded by Ivey announcing in May 2022 the state would award a $2.5 million Community Development Block Grant to help build the required infrastructure for the site off Alabama Highway 287 and Interstate 65. BCEDA EVP Lee Johnson (LJ) took the time to speak with your author (KW) about what the Novelis project means for the area, as well as other alliance successes, challenges and initiatives.

KW: Please describe the chain of events leading up to the Novelis announcement.
LJ: The Novelis story is a story of preparedness from a workforce, site and community perspective. We started the journey of recruiting Novelis in 2008 when the South Alabama mega site was first identified. We worked with economic development partners such as the Baldwin County Commission, CSX and others to identify a large tract of land that eventually became the South Alabama Mega Site in Bay Minette. The site was optioned in 2009 by the Baldwin County Commission, then eventually purchased in 2012. From 2012 to 2022, we went on to leverage more than $13 million in product development funds from the State of Alabama to continue to invest in the site and put it in a more marketable position. Significant work was done in a proactive fashion to make the site more “shovel ready,” with the goal of recruiting large industry.

We were very selective about the projects and companies we entertained, making sure to maximize the site’s potential and our potential from an economic impact standpoint. We were also diligent in preparing workforce assets and our communities to be able to support such a large economic development project. That project happened in 2022 when we successfully recruited Novelis — one of the largest economic development projects in the State of Alabama’s history. It was a more than 10-year journey for us, but history shows that most (if not all) mega projects in the U.S. take that long — and sometimes longer — to materialize.

KW: Despite project costs increasing more than 60% over previous projections and the completion date being moved from 2025 to late 2026, it sounds like Novelis remains confident that this investment is solid and long-term. Has Bay Minette and the surrounding area seen any ripple effect from the project at this point?
LJ: Yes. The project is fully moving forward with full commitment from Novelis and their parent company to bring this generational project to fruition. Construction continues on the site with the anticipation to have their large hiring ramp-up in 2025. Novelis has proven to make 50-plus-year commitments on the facilities they launch, and this one will represent a new industry standard (the most sophisticated and sustainable of its kind, incorporating technology such as AI, robotics and automation).[1] Novelis, which has said average annual salaries will be roughly $65,000,[2] currently has approximately 100 employees in Baldwin County currently — excluding contractors working on the site. Bay Minette and the surrounding area has already begun to feel a positive impact as a result of recruiting Novelis, with growing interest in both commercial and industrial development. Active projects are underway in the commercial space that will help redevelop downtown and other parts of Bay Minette and support both Novelis and the community. The City of Bay Minette will continue to see the long-term benefits of economic development for years to come on the heels of this project.

KW: Speaking of ripple effects, what sort of additional business is the Novelis plant expected to create in terms of suppliers possibly moving in and new retail and/or housing?
LJ: Increased and elevated retail and housing will be immediate, direct impacts from the Novelis project. We anticipate project announcements in this regard in early 2025 that will positively shape Bay Minette.

As it relates to supply chain, the aluminum industry does not have a traditional supply chain like that of an industry sector such as automotive that we are familiar with in the Southeast. The two main streams of ancillary projects would come from upstream suppliers of metal material and downstream customers of Novelis that heavily utilize their product. As time progresses, we feel confident that we will see opportunities with both types of projects.

KW: Are there any other recent BCEDA success stories — perhaps closer to the coast — that you would like to highlight upon the BCEDA’s 30th Anniversary?
LJ: We have been fortunate to see success across all major pillars of our economic development program of work. The new industries that are recruited tend to receive the large majority of airtime in our business, but we have been very successful in other economic development efforts. Through the years, we have been effective in helping a number of companies not only locate in Baldwin County, but also expand many times over. A few notable company expansions include Collins Aerospace, Segers (a Rolls-Royce Authorized Maintenance Center for the T56/501 engine)[3], Ecovery (metal-processing company)[4], Plasmine Technology (a supplier of paper specialty and sizing chemicals for North America)[5] and Kaishan Compressor USA.

We are extremely proud to have played a part in developing and launching the Baldwin Prep Academy alongside the Baldwin County Public School System, which will be a key piece of our overall workforce story going forward. In the entrepreneurship space, we are in the process of renovating the former K-1 Center in partnership with the City of Fairhope that will be the permanent home of Hatch Fairhope: Baldwin County’s tech-based entrepreneurial development center. Lastly, we launched a talent attraction and development strategy and overall brand for Baldwin County in 2024 called Belong in Baldwin (belonginbaldwin.com). This is a resource for current and prospective residents of Baldwin County, as well as business and industry, that serves as a one-stop shop that highlights living and working in Baldwin County and its career opportunities.

KW: What are BCEDA’s top challenges and how are they being addressed?
LJ: Like most areas across the country, we have entered a season where workforce and labor availability has become a challenge. A significant number of U.S. workers exited the workforce during the pandemic, in addition to several other headwinds that negatively impacted labor availability. Fortunately for Baldwin County, we have some positives working in our favor in this regard: We have developed a quality workforce ecosystem in conjunction with our partners at Coastal Alabama Community College, Baldwin County Public Schools, the University of South Alabama and other strategic workforce partners to help mitigate these challenges. Also, our growth as a community has helped fill the gap, as most of our in-migration population is considered “working- businesses, maintain and grow our quality of life and continue to diversify our local economy. That includes continuing to recruit and expand business and industry, leaning in on impactful infrastructure projects, developing our industrial product, developing and growing our entrepreneurial ecosystem and strategizing and implementing programs that positively affect economic development in our community. We have been wildly successful in all of these areas, and our focus is to continue to harness the momentum we have for additional economic development in Baldwin County.

References

[1] Underwood, Jerry. “Novelis Plans $2.5 Billion Alabama Aluminum Mill With 1,000 jobs,” Made In Alabama, May 11, 2022.
[2] edpa.org/advantagesite
[3] segers.aero
[4] ecoveryllc.com
[5] plasmine.com